Service Tax levy on goods transport by road services - Reg.

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....MTC with the government and a joint statement by the government and AIMTC, dated 4.7.08, was issued laying down the principles to be followed in respect of the issues raised by AIMTC. 2. The issues raised by AIMTC and the clarifications with respect to those issues are given below: 3. Issue:  GTA provides service to a person in relation to transportation of goods by road in a goods carriage.  The service provided is a single composite service which may include various intermediary and ancillary services such as loading/unloading, packing/unpacking, transshipment, temporary warehousing.  For the service provided, GTA issues a consignment note and the invoice issued by the GTA for providing the said service includes ....

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....form and substance of the transaction are to be taken into account. The guiding principle is to identify the essential features of the transaction. The method of invoicing does not alter the single composite nature of the service and classification in such cases are based on essential character by applying the principle of classification enumerated in section 65A. Thus, if any ancillary/intermediate service is provided in relation to transportation of goods, and the charges, if any, for such services are included in the invoice issued by the GTA, and not by any other person, such service would form part of GTA service and, therefore, the abatement of 75% would be available on it.  4. Issue 2: GTA providing service in relation to tra....